Solana NFT Inches Ahead of Ethereum in NFT Market, Bybit X Nansen Report Finds – NFT News Today
When crypto market sentiment turns sour, investors and other optimists will often flock to NFTs. Despite stellar growth in 2021, it seems as if non-fungible tokens have lost a lot of momentum. New findings in Bybit and Nansen’s report indicate that things are going in the wrong direction.
NFT momentum continues to decline
It is not uncommon to see certain correlations between crypto markets and NFT prices. When crypto-assets like BTC and ETH do well, NFT prices tend to bottom out. Conversely, when NFT floor prices rise, BTC and ETH turn slightly bearish. A September 2022 report by Bybit and Nansen illustrates this correlation rather well.
Moreover, broad NFT indices fell by 26.2% and 16.7% respectively. On the other hand, ETH price is down 66% YTD. Although these NFT indices are bearish overall, they hold their own compared to Ether. The percentages confirm that both indices outperformed Ether YTD, although their USD values fell by 74.9% and 71.7%. From that perspective, NFT has underperformed against Ethereum.
It is often worth comparing the performance of NFT indicators against BTC. Surprisingly, that correlation is strongly reduced. Bitcoin continues to lose value, yet two broad indices gain in Ether. Additionally, several top collections including BAYC, MAYC, DigiDaigaku, and CryptoNinjaPartners saw their price floors increase in September.
Genre-based, game-related NFTs continue their streak of underperformance compared to social/metaverse/industrial assets. New projects offer a remedy but often run out of steam relatively quickly. Hence, for now, the market focuses on social-based NFTs rather than industry, giving better YTD performance. However, that momentum may change once again with the launch of a new Art Block series.
Solana NFTs Gain Ground
Behind the scenes, Solana and Ethereum continue to battle for dominance in the NFT industry. Solana’s upward momentum has stalled somewhat, though it remains visible. Several volume spikes were recorded in September 2022, while Ethereum volume continued to decline. The report illustrates the importance of the zero-royalty scheme (courtesy of Sudoswap), although Magic Eden disputes that idea. Instead, their MetaShield allows project owners to introduce optional royalty fees and watermark selected images.
Despite the pace of Solana construction, Ethereum leads the industry in mining transactions. However, the minting volume is roughly split down the middle. New projects in Solana continue to generate more trading volume than Ethereum – at least in the short term. That trend started in August and continued into September, thanks primarily to y00ts and DeGods.
Overall, Solana now has more NFT users than Ethereum, even if the value per unit – in USD – is practically the same on both networks. That USD value has declined significantly since early 2022. The charts for both chains look pretty much the same on that front. The average is now close to $30, making NFT more affordable
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